Inflation increased in July and moved further away from the Federal Reserve's target rate as central bank policymakers assess the health of the economy amid the president's calls for interest rate cuts.

The Bureau of Labor Statistics on Tuesday said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.2% in July compared with last month, while it was up 2.7% from a year ago. The monthly figure was in line with the estimate of economists polled by LSEG, while headline was slightly cooler than the 2.8% expected.

So-called core prices, which exclude volatile measurements of gasoline and food to better assess price growth trends, were up 0.3% from the prior month and 3.1% from a year ago. Those annual core figure was hotter than economists' expectations, while monthly was in line.

This is a developing story. Please check back for updates.